Mohawk Industries (Calhoun, Ga.), along with its subsidiaries, posted net earnings of $43.9 million during the fourth quarter of 2011, 7.4 percent less than the $47.4 million in net profit it made during the final quarter of 2010, according to its latest financial report. "The flooring industry should continue its improvement throughout 2012," it reported.
Mohawk Industries (Calhoun, Ga.), along with its subsidiaries, posted net earnings of $43.9 million during the fourth quarter of 2011, 7.4 percent less than the $47.4 million in net profit it made during the final quarter of 2010, according to its latest financial report. "The flooring industry should continue its improvement throughout 2012," it reported.
Factoring in boosts from operating lease corrections and business restructurings, as well as a hit on income taxes, Mohawk's adjusted net earnings were $49.5 million during the quarter, a 9.8 percent improvement over the $45.1 million in adjusted net income it reported during the fourth quarter of 2010. This improvement in adjusted net income prompted Mohawk CEO Jeffrey Lorberbaum to give a favorable recap of the fourth quarter.
"In the U.S., sales in both the residential and commercial categories expanded, with commercial growing at a faster pace," Lorberbaum said. "Increased prices across many product categories are being implemented in the first quarter to recover higher material costs. Each segment has reduced costs through process improvements, investments in technology and strategic realignment of assets."
Mohawk's net sales for the fourth quarter of 2011 were about $1.4 billion, up roughly 9.0 percent from $1.3 billion in net sales during the fourth quarter of 2010. The company's wood flooring sales, which it does not break out, continued growing in Europe, supported by the success of new product introductions, expansion of its DIY strategy, and the addition of Australian distribution and Russian manufacturing, the company said. Wood sales also grew in the U.S., and Mohawk "received new commitments from home centers" for its wood flooring. Mohawk also continued re-configuring wood flooring manufacturing in Malaysia.
For all of 2011, Mohawk posted net earnings were of $178.2 million, down about 6.2 percent from net earnings of $189.9 million in 2010. The company's net sales in 2011 reached $5.6 billion, up roughly 5.7 percent from 2010's $5.3 billion.